Skip to content
BOL Conferences
Thread Options Tools
#2224758 - 10/30/19 01:20 PM HELP PLEASE! Stumped by endorsement claim
BY THE RULES Offline
Member
Joined: Jun 2004
Posts: 91
NC
My customer has submitted an affidavit for "not endorsed as drawn or missing endorsement". Checks payable to business and endorsement has it being payable to an individual (i.e. Pay to the order of _________ followed by this person's signature then Business Owner's signature and name of business or vice versa - some do not reference business name, only has illegible signature and then pay to info).
When branch submitted to operations folks to submit to BOFD, they responded that the payee must be the one making the claim.

This is the second time the customer has submitted the same claim (additional check on this claim). Last year, the same thing happened.
Branch was to obtain payee contact info so we could get new affidavit or something to indicate he never received payment. Turned out the business was not legitimate, did not complete the work and customer filed police report.

Just found out yesterday that he took the BOFD to court and lost the case, which is when he filed the second affidavit. According to what he told the Branch Mgr, the judge told him to sue us because it was our fault the items paid. I'm at a complete loss as to how to respond to this claim at this point. I think we should respond in writing and include UCC references and whatever other banking regulation reflects banking expectations in this type scenario for the paying bank. Anyone able to give me some suggestions/guidance? Thanks in advance!!

Return to Top
General Discussion
#2224762 - 10/30/19 01:38 PM Re: HELP PLEASE! Stumped by endorsement claim BY THE RULES
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
According to what he told the Branch Mgr, the judge told him to sue us because it was our fault the items paid . . . . I'm at a complete loss as to how to respond to this claim at this point. I think we should respond in writing


I would advise getting the bank's legal counsel involved and all written correspondence to the customer should be approved by them.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2224766 - 10/30/19 01:50 PM Re: HELP PLEASE! Stumped by endorsement claim BY THE RULES
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,220
Galveston, TX
Oh and close their account.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2224781 - 10/30/19 03:27 PM Re: HELP PLEASE! Stumped by endorsement claim BY THE RULES
BY THE RULES Offline
Member
Joined: Jun 2004
Posts: 91
NC
Thanks!

Return to Top